Crown Butte shareholders approve New World sale

Already old news, the once-promising New World gold project has taken another step on the road to oblivion.

New World owner Crown Butte Resources (CBL-T) reports that its shareholders have approved the “sale, exchange or other disposition” of the southwestern Montana property, the company’s only land holding.

In August 1996, after lengthy negotiations with the U.S. government, Crown Butte agreed to halt development of the US$100-million project in exchange for unspecified property from the U.S. government valued at US$65 million.

Since 1987, Crown Butte had spent US$37 million on exploration and site preparation at New World.

Crown Butte also agreed to complete its cleanup of the New World site, which had been mined sporadically since the 1880s. Under terms of the deal, Crown Butte was to place US$22.5 million in an interest-bearing escrow account to fund the reclamation of New World after having liquidated the property assets it received from the U.S. government.

Crown Butte reports that negotiations are under way regarding the U.S.

government property assets.

During the permitting process, the New World project came under intense scrutiny over perceived threats to Yellowstone National Park, some 5 km distant. Environmentalist groups claimed that in the event of a tailings spill (which they consider a distinct possibility, given the area’s high level of seismic activity), the ecosystem of the park and the waters of the Clarks Fork river system just north of the park would be seriously harmed.

At Dec. 31, 1996, the five deposits at New World were estimated to contain aggregate probable and possible resources of 8.2 million tons grading 0.2 oz. gold and 1 oz. silver per tonne, and 0.73% copper. Production had been projected at 130,000 oz. gold per year, plus silver and copper credits, for a mine life of 12-15 years.